Coordination of STD and SSD Payments

By / January 13, 2017 / After Approval / 12 Comments

Find out what happens when short-term disability (STD) payments overlap with Social Security Disability (SSD), and how long-term disability (LTD) factors in.

Dear Disability Advisor,

I looked up my status of social security disability claim and this is what it states: “Your claim for Disability benefits has been approved. A detailed notice has been sent to you with your benefit information. For more information please use the Benefit Verification Letter to check your benefit details.   If you disagree with the decision, you may request an appeal in 60 days of the date on the Notice of Decision you receive.” Does this mean my disability has been approved? I’ve been out of work since October 2016 and am receiving short term disability through my employer until April 1, 2017.  Will this effect my disability amount if I am in deed approved?  Thanks!!!

Tammy

Dear Tammy,

The status you received indicates that you will be receiving either a fully favorable or partially favorable decision. Partially favorable would mean  that either the established disability date is later than you claimed or there’s been a determination that you have recovered and your claim has been closed, making only back benefits payable.

Usually  short-term disability (STD) policies have a provision that requires recalculation of STD benefits for any months that you have been paid STD and for which you will be paid Social Security disability (SSD aka SSDI). This means that you will be required to use your SSD back benefits to repay the STD overpayment if there were any overlapping months.

If the STD is higher than ongoing SSD, you will continue to receive reduced STD to supplement the Social Security until the STD maximum benefit period runs out. The same is true of long-term disability (LTD) insurance if you have LTD coverage when STD ends. You can request a copy of your STD policy to review all the provisions.

Sincerely,
The Disability Advisor

Rate this post

  • Andrea

    Hi,I had my hearing on Feb 21st still no word is that good or bad?

    • Dear Andrea,

      You appear to have posted your question twice. Please see my response to your first question.

      Thank you,
      Kay

  • Dear Dave,

    Let me try to explain again. You are already eligible for more than twenty-four months of Social Security Disability (SSDI) benefits. Your claim is being processed and you will eventually get the SSDI back pay for all those months (reduced by SSI paid for any of the same months). Because of your eligibility for past months, you are automatically eligible for Medicare in the twenty-fifth month of SSDI eligibility.

    As I explained in my prior response, you can refuse Part B Medicare, but there are consequences for doing so. Also, the state may not be willing to or legally able to reinstate your state health insurance coverage because you refused Medicare and/or because your SSDI may be too high for coverage.

    Sincerely,
    Kay

  • Dave s

    I got a letter from social security saying that they are withholding my back benefits and they are taking out medicare premiums out of my back pay, I did not have disability or medicare before so how can they collect premiums for something I did not have, I understand them holding the back pay, but I don’t understand them taking out premiums

    • Dear Dave,

      You are eligible for Medicare beginning with the twenty-fifth month of disability. Part B Medicare, which covers doctors and most out-patient services requires payment of a premium. You can refuse the Medicare coverage and you will not have to pay premiums for past months; however, if you want Medicare now, you would not be able to get it. You would have to wait until the next general enrollment period, which is in the last quarter of the year and your insurance would not begin until the following July. In addition, your premiums would be higher than if you had accepted enrollment at the first point you were eligible. Note that if you had medical services in past months and your Medicare starts for those months, the unpaid bills or your proof of paying for the medical services can be sent to Medicare for payment to the provider or reimbursement to you.

      Sincerely,
      Kay

  • Dear Dee,

    You are eligible for SSDI while getting SDI, but the SSDI will be offset (reduced) by the SDI and if the SDI is equal to or more than the SSDI, then the offset would be total and no SSDI would be payable until SDI stops. The offset will apply to any back pay months for which you were also eligible for SDI, so it is likely that no back pay will be payable.

    Sincerely,
    Kay

  • Dear Ashley,

    If you are approved, Supplemental Security Income (SSI) will, as its name implies, supplement (add to) your Social Security Disability (SSD) benefit; it will not duplicate it. So, with $330 Social Security, the maximum SSI you could receive is $425. If you are getting free housing from a relative or friend, the amount would be less.

    Sincerely,
    Kay

    • Ashley

      Thank you for your response!

  • Dear Petseeker,

    I suggest that you check with your state social services office to see whether you can qualify for Medicaid based on your family income and the fact that you are working, either for months that SSI is suspended or for all months instead of SSI-based eligibility.

    Sincerely,
    Kay

  • Dear Trezario,

    It typically takes a couple months after SSI has been paid for the SSD to start. And, your SSD claim is sitting on someone’s desk waiting its turn to be worked up for payment authorization. SSI will continue until SSD is paid.

    Sincerely,
    Kay

  • Dear Jay,

    SSI is payable for months before Social Security benefits start if your and your husband’s other income and assets are within the SSI limits not considering the Social Security that hasn’t been received yet.

    Social Security Disability (SSDI) back pay is offset (reduced) by SSI back benefits payable for any months that eligibility overlaps. So, it is correct that payment of the SSDI is dependent in part of the status of the SSI claim. If the SSI claim is not payable, the local office is supposed to tell the payment center that no SSI is payable so the SSDI can be processed.

    Your husband needs to contact the local office and if he has not received a formal Supplemental Security Income (SSI) denial, to check to see if his SSI claim is still open. If it is still open, he can either voluntarily withdraw the SSI application or he can pursue payment of the SSI. If the claim is still open, I suggest that he provide all the necessary financial information to receive the SSI because it will get paid faster than the SSDI and because SSI is not taxable whereas some of the Social Security could be taxable based on how much SSDI back pay he gets and on how much other income the family has.

    Sincerely,
    Kay

Read It To Me
Listen to the article with our text to speech feature
Ask the Adivsor
Click for the BBB Business Review of this Online Publications in Orlando FL

Send this to friend